The Maribyrnong Crime Investigation Unit said the four victims from the eastern suburbs were told that they owed a tax debt and that if they did not pay up, they would be arrested.

The Australian Taxation Office (ATO) issued its own warning earlier this year, asking the public to err on the side of caution when it comes to the elusive cryptocurrency space, after it revealed that over AU$50,000 was paid via bitcoin to scammers last year claiming fake ATO tax debts.

"Cryptocurrency operates in a virtual world, and, once the scammers receive payment, it's virtually impossible to get it back," assistant commissioner Kath Anderson said in a statement at the time.

"Scammers are constantly adapting their methods to maximise their chances of picking your pocket. Unfortunately, it was inevitable that scammers would target cryptocurrency given its current popularity and anonymity."

As the ATO does not have transparency over what cryptocurrency is owned by taxpayers -- Austrac only recently got the legislative approval to monitor digital currency for anti-money laundering purposes -- it's unclear why those in possession of bitcoin thought the taxation office would require them to pay via non-Australian dollars for an individual debt.

A report from the Australian Competition and Consumer Commission (ACCC) in May found that many Australians fell victim to cryptocurrency scams last year, with approximately AU$2.1 million in losses accrued by those chasing the digital currency dream or paying a virtual ransom.

"Scammers adapt each year and find ways to exploit popular trends, new platforms, new ways of communicating, fad products, changes to legislation, or new investment opportunities," the ACCC wrote.

An example is paying ransomware through bitcoin.

With AAP

SEE ALSO

The Bureau of Meteorology pulled 'fake news' bitcoin advertisements and helped the AFP with its investigations into staff mining cryptocurrency in February 2018, but its CEO said the incidents weren't related.

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